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Cash Reserve from Standard Life Bank

Your client can access extra funds at mortgage rates on selected products

One of the most impressive things about a Freestyle Mortgage is the Cash Reserve facility which offers your clients an ideal way to borrow additional funds at our mortgage rates.

Your client's Cash Reserve can be used to finance anything from a luxury holiday or car, to building an extension to their home or they could even use it to fund a deposit on a second home.

How does it work?

Your client's Cash Reserve is the difference between the amount we were willing to lend them when they applied for their Freestyle Mortgage and the amount they actually borrowed. They can increase the amount available in their Cash Reserve by making overpayments at any time. It can also increase if the value of their property increases. In this case your client can ask us for a Credit Re-assessment (a fee of £99 is payable) and we'll revalue their property and work out how much more we would be willing to lend them.

The facts:

• There is a fee of £99 for the Cash Reserve facility which will be added onto your client's arrangement/booking fee
• Borrowing additional funds at a fixed rate is subject to a booking fee. The fixed rate will move onto our Freestyle standard variable rate at the end of the fixed rate period
• Your client can repay over a term to suit them as long as they remain within the agreed term of their mortgage
• Your client can take from £1,000 right up to the whole amount of their Cash Reserve at any time subject to normal lending criteria
• An admin fee also applies each time your client borrows from their Cash Reserve
• Overpayments can be made regularly or as a lump sum (minimum amount £1,000) to increase your client's Cash Reserve. On fixed rate mortgages overpayments are allowed up to 10% of the balance outstanding per year. Overpaying by more than 10% of the capital outstanding in 12 months or repaying the mortgage in full within the tie in period will mean your client will incur early repayment charges
• Further borrowing will increase your client's monthly payments, interest payable and remaining balance secured on their property.

Please refer to our tariff of charges by clicking on the link in the Related Links box for any fees that may be associated with this feature.

Main Documents

Supporting Information Underwriting Guide (PDF, 77kb) Code: SLBUGUIDE

The information on this site is for qualified advisers only and must not be relied on by anyone else. If you are not an adviser you should go to our main website for information about our products and services.

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